accounting standards

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Transcript of accounting standards

Members of MASBA chairmanThe Accountant GeneralSix other members with knowledge and experience in financial accounting and reporting as well as in areas such as accountancy, law, business and financeAt least five of the three categories abov must be members of MASBThree advisors having knowledge and experiences in accountancy, law, business or finance representing the Securities Commission, the Central Bank of Malaysia and the Registrar of Companiesaccounting standardsThe Needs For Accounting StandardsThe Due Process Of Standard Setting( Malaysia )The Standard Setting Bodies In MalaysiaThe main body entrusted with setting up national accounting standards is the MASB which is established through the Financial Reporting Foundation under the Financial Reporting Act 1997Functions of MASBIssue new accounting standards as approved accounting standards and to review, revise or adopt existing accounting standards as approved accounting standardsIssue statements of principles for financial reportingSponsor or undertake development of possible accounting standardsConduct public consultation as necessaryDevelop a conceptual framework for the purpose of evaluating proposed accounting standardsMake such changes to proposed accounting standards as considered necessarySeek the view of the FRF in relation to new and existing standards, statement of principles, and changes to proposed standardsDetermine scope and application of accounting standardsTo perform such other function as the Minister of Finance may prescribeDEFINITIONA principle that guides and standardizes accounting practices. The Generally Accepted Accounting Principles (GAAP) are a group of accounting standards that are widely accepted as appropriate to the field of accounting. Accounting standards are necessary so that financial statements are meaningful across a wide variety of businesses; otherwise, the accounting rules of different companies would make comparative analysis almost impossible.''statements of accounting practices used for the preparation of financial statements''

As one of the forms of regulating financial reportingFor users to ensure enterprise provide information which is clear, consistent, reliable and also comparableGovernment also finds accounting standards necessary as a form assurance that the data provided to them by the enterprises are reliableFor computation of taxationPromote uniformity as differences among financial statements of different enterprises will be minimizedThe Functions of FRFi. To provide any view to MASB on any matters that MASB seeks to undertake within its functionsii. To review the performance of MASBiii. To be responsible for all financial arrangements for the operations of MASB, including to approve MASB'S budgetiv. To perform other functions as prescribed by the Minister of FinanceStage 1: MASB seeks public comment on IASB's draft technical pronouncements.

Stage 2: Deliberation at the Working Group level on IASB's draft pronouncements

Stage 3: Deliberation at the MASB (the Board)Stage 4: Issuance of Standard by IASBFinal Stage: Issuance of standard by MASB

International Accounting Standard Boards (IASB)Previously known as International Accounting Standard Committee (IASC)Founded in 1973 with the objectives of formulating and publishing accounting standardsIn the interest of the public, to be used in the presentation of the financial statementsIASC was also responsible for promoting worldwide acceptance and observance of its standardsIASB is an independent, privately-funded accounting standard setting body based in London, UKIts board members have a variety of backgrounds and they come from nine countriesTo develop a single set of global accounting standards of high qualityUnderstandable and enforceable that require transparent and comparable information in general purpose financial statementsIASB also takes the role of cooperating with other accounting standard setters to achieve convergence in accounting standards around the world